IR Presentation Material - p April, 2021 Oriental Land Co., Ltd. This material has been specifically prepared for institutional investors who are ...
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IR Presentation Material
April,
p 2021
Oriental Land Co., Ltd.
This material has been specifically prepared for institutional investors who are not familiar with our company,
and is not presentation material for the earnings presentation.Contents
I. Business Outline II. 2020 Medium-term Plan
I-I. Theme Park Business III. Growth Investments beyond FY3/22
I II Hotel Business
I-II. IV For Long-term
IV. Long term Sustainable Growth
I-III. Overview V. Appendix
Cautionary Statement
This document includes statements about Oriental Land’s plans, estimates, strategies and beliefs.
The statements made that are based on historical fact represent the assumptions and
expectations of Oriental Land in light of the information available
2 to it as of the date when this
document was prepared, and should be considered as forward-looking.
Oriental Land uses a variety of business measures to constantly strive to increase its net sales and
management efficiency.
However, Oriental Land recognizes that there are certain risks and uncertainties that should be
considered which could cause actual performance results to differ from those discussed in the
forward looking statements.
forward-looking statements
Potential risks could include, but are not limited to, weather, general economic conditions, and
consumer preferences. Therefore, there is no firm assurance that the forward-looking statements
in this document will prove to be accurate.
Theme Park attendance figures have been rounded. Financial figures have been truncated.
All rights reserved.
2
2I. Business Outline
Corporate Profile I. Business Outline
Corporate Data Stock Information
Established July 11
11, 1960 Tokyo Stock
Stock Listing Code
Exchange, First
No.
Total Assets Section 4661
¥1,040.4 billion
[[consolidated]]
Shareholders’ Investment Unit 100 shares
Equity ¥759.9 billion
[consolidated] Stock Price ¥15,610
JCR : AA [Stable] Aggregate
4 Market
Bond Ratings ¥5,677.2 billion
R&I : AA- [Stable] Price
[As of March 31, 2021] [As of April 27, 2021]
Corporate Mission Business Domain
Our mission is to create happiness and “We pursue b
“W businesses
i th
thatt fill your
contentment by offering wonderful heart with energy and happiness”
We strive to create new value in a high-value
dreams and moving experiences created business for enriching and nourishing people’s hearts
with original
original, imaginative ideas and appealing to abundant humanity and happiness
4
4History and Business Description I. Business Outline
History Tokyo Disney Resort
Disney Hotels Shops and restaurants, Monorail service
1960 Oriental Land Co., Ltd. [OLC] was established [under direct provided around
management] cinema complex, etc. the resort
O Ca
OLC anddCChiba
ba Prefecture
e ec u e co
concluded
c uded the
eUUrayasu
ayasu
1962
District Land Reclamation Agreement Disney
Ambassador
Ikspiari Hotel
Reclamation work began off the coast of Urayasu
1964
[completed in 1975]
OLC and Walt Disney Productions [currently
[currently, Disney Tokyo
Enterprises, Inc.] concluded an agreement on the Disneyland
1979 Tokyo DisneySea
licensing, design, construction and operation of Hotel
Tokyo Disneyland Hotel MiraCosta
Tokyo Disneyland
1983 Tokyo Disneyland opened
1996
Listed on the first section of the Tokyo 5 Tokyo DisneySea
Stock Exchange
2000 Ikspiari and Disney Ambassador Hotel opened
Disney Resort Line, Tokyo DisneySea, and Tokyo
2001
DisneySea Hotel MiraCosta opened
Tokyo Disney Resort
2008 Tokyo Disneyland Hotel opened Official Hotels
Milial Resort Hotels Co
Co., Ltd.
Ltd (MRH) acquired all
2013
stocks of Brighton Corporation Co., Ltd.
2016 Tokyo Disney Celebration Hotel opened The first Disney Theme The only “Sea”-themed Disney
Park outside of the U.S. Theme Park in the world
Managing and operating a large scale theme resort offering versatile
Entertainment facilities 5
5Unique Competitive Advantage to Support Our Earnings I. Business Outline
1. Prime Locations 2. License Agreement with Disney
2046 at maximum
Vast Land Holdings
Note: When facilities open as planned, the
Period
agreement period can be extended to
Own approx.
pp 2,000,000
, , m2 2076 at maximum
[approx. 500 acres] of land easily accessible
from central Tokyo Activities Management and operation of Tokyo
Covered Disney Resort, etc.
Huge Market
Payment of royalties fees based on net
C
Consideration
id ti
sales [yen basis]
Approx. 30 million of high income
households living within 50km [30 miles] Relationship No capital or personnel relationship
radius
O l OLC operates
Only t Disney
Di Theme
Th Parks
P k ini Japan
J
6
3. Human Resources with
Magnificent
g Hospitality
p y
Ibaraki
Saitama
東京 Raise the level of Raise the level of
千葉 Guest Satisfaction Employee Satisfaction
Tokyo
神奈川 Chiba
Kanagawa
Diverse measures and education/training programs
are implemented with as much focus on employee
satisfaction as on Guest satisfaction
Establish stable earnings base by implementing structural/non-structural
strategies that capitalize on the advantageous location 6
6Mechanism of Value Creation I. Business Outline
Unique
U i competitive
titi V l
Value
Business model
advantage provided
New
Hotel investment
Business
Segment
←Enhanced appeal
increases cash flow Increasing
(1) Prime Locations corporate value
(2) License Agreement with “Creating
Disney Theme Park 7 Enhance appeal by Happiness”
(3) Human Resources Segment making additional
investments on an
ongoing basis →
Attract more
Other
Oth Guests/Increase
Business sales per Guest
Segment
Deliver more happiness by making tangible and intangible investments
to increase corporate value 7
7Changes in Business Results I. Business Outline
Net Sales and Operating Margin Operating Profit and Profit
Consolidated net sales [¥ billion] Consolidated operating profit [¥ billion]
Operating margin Consolidated profit attributable to owners of parent
[¥ billion]
525.6
477.7 479.2 129.2
464.4
113.1 110.2
23.7% 24.6%
23.0% 96.8
20.9% 90.2
82.3 81.1
62 2
62.2
170.5 8
Influence of Influence of
COVID-19 pandemic COVID-19 pandemic
3/17 3/18 3/19 3/20 3/21 [FY] 3/17 3/18 3/19 3/20 3/21 [FY]
(45.9)
(27.0)% (54.1)
Our business result decreased as a result of temporary closure of 4 months
and giving utmost priority to safety and peace of mind in Park operations 8
8Segment Information I. Business Outline
Breakdown by Segment and Content of Segments
Results for FY ended 3/21
Consolidated net sales
¥170.5
1 0 billion
Tokyo
o yo Disneyland
s ey a d
Theme Park Tokyo DisneySea
Segment
78.7% Tokyo Disneyland Hotel
9
Tokyo DinsneySea Hotel MiraCosta
Disney Ambassador Hotel
Hotel Business
Tokyo Disney Celebration Hotel
Segment and others
Ikspiari
Disney Resort Line
16.8% Other Business
and others
Segment
g
4.5%
About 80% comes from the Theme Park Segment 9
9I-I. Theme Park Business
Trend in Theme Park Attendance I-I. Theme Park Business
Annual Theme Park Attendance
[million people]
Tokyo Disney Resort Tokyo Disney Resort Tokyo Disney Resort
%: year on year
25th Anniversary 30th Anniversary 35th Anniversary
Opening of Tokyo DisneySea Tokyo DisneySea Tokyo
T k DisneySea
Di S
Tokyo DisneySea 5th Anniversary 10th Anniversary 15th Anniversary
Tokyo Disneyland Tokyo Disneyland
32.56
15th Anniversary 20th Anniversary 31.30
31 30 [+8.2%]
[+8 2%]
[+13.8%] 30.00
[(0.6)%]
27.22
25.82 [+7.1%]
Opening of 25.47 25.35
[+2.6%] [+4.2%] [(0.1)%]
Tokyo Disneyland
22.05
[+27.4%]
11
17.46
[+4.6%]
7.56
[(73.9)%]
9.93
3/84 3/99 3/02 3/04 3/07 3/09 3/12 3/14 3/17 3/19 3/21 [FY]
Note: Attendance figures for FY 3/12 and 3/17 decreased from the previous fiscal years respectively because of the influence of
earthquakes. Attendance figure for FY 3/21 decreased from the previous fiscal year due to the spread of COVID-19.
Theme Park attendance has increased driven by each anniversary event,
exceeding 30 million on a stable basis 11
11Trend in Theme Park Attendance I-I. Theme Park Business
B kd
Breakdown off G
Guests by
b Region
R i N
Number
b off O
Overseas Guests
G
[million people]
Oversea
6.0% 8.5% 9.8% 9.6% 10.0% 3.13
as Other
15 0%
15.0%
2.95 2.90
areas in
Japan
27.3% 26.8% 2.55
26.6% 29.6% 27.1%
1.81
Metropo
85.0%
66.7% 64.7% 63.6% 62.9%
60.8%
Are
ea
olitan
12
0
3/16 3/17 3/18 3/19 3/20 3/21 [FY] 3/16 3/17 3/18 3/19 3/20 3/21 [FY]
Metropolitan ・Largest number of Guests accounting ・Increases in tandem with the
Area for approx.60%
pp growing number of tourists visiting
Overseas Japan
Other areas ・Mainly Chubu and Koshinetsu regions ・More guests can be attracted from
in Japan ・Tends to grow in anniversary years this category
Guests from overseas and areas other than metropolitan area
decreased due to COVID-19 12
12Net Sales per Guest I-I. Theme Park Business
Net Sales per Guest and Breakdown
[¥] Ticket price revision policy
13 642
13,642 Increase in Theme Price sensitivity
×
6,538 Park value survey result
Ticket
11,815 Receipts ＋Trends in demand
11,594 11,614 11,606
11,257 Note: Take external environment including
5,352 5,292
5,264
, 5,339 tax hike into consideration
5 007
5,007
• Ticket receipts per Guest increase over
two years since ticket price revision
• Tend to increase in anniversary event
4,122
years
Merchandise*
13 • Development of contents, such as Duffy &
3,964 4,074 3,989 4,122 3,877
Friends series, lead to increase in
earnings
*Excludes net sales for online Tokyo Disney Resort Shopping service
2,982
2,286 2,256 2,286 2,341 2,437 Food and
Beverages • Stable net sales maintained regardless of
whether or not events are hold
3/16 3/17 3/18 3/19 3/20 3/21 [FY] • Create more dining opportunities
Note: Each figure for net sales per Guest in FY3/21 grew for the reasons including restriction on ticket types under the limit of COVID-19
pandemic, temporary demand for merchandise, and increased dining opportunities with less waiting time for attractions.
Achieved increase in net sales per Guest based on meticulous pricing strategy 13
13I-II. Hotel Business
Facilities of Hotel Business I-II. Hotel Business
Di
Disney Hotels
H t l
Disney Ambassador Tokyo DisneySea Tokyo Disneyland Tokyo Disney
Hotel Hotel MiraCosta Hotel Celebration Hotel
Deluxe-type Deluxe-type Deluxe-type Value-type
504 rooms 502 rooms 706 rooms 702 rooms
・ Own four Disney Hotels [about 2,400 rooms]
・ Tokyo Disney Resort Toy Story Hotel is scheduled to launch in the 2nd half of FY3/22
・ New Disney Hotel located inside Tokyo DisneySea15is scheduled to launch in FY3/24
Other Hotels
・ Own Brighton-brand hotels [about 600 rooms]
・ Hyatt Regency Seragaki Island Okinawa opened in August, 2018 [joint project of three
companies]
Strengthen Hotel business with the growth and expansion of
Tokyo Disney Resort 15
15Results for Hotel Business I-II. Hotel Business
Net sales and operating margin for Hotel Business
Net sales [¥ million] Operating margin
Opening of Tokyo Disney
Celebration Hotel
72 427
72,427
66,144 66,447 64,375
26.5%
24.5% 22.9%
22.1% 16 28,627
3/17 3/18 3/19 3/20 3/21 [FY]
(6.8)%
Net sales and operating profit dropped due to the temporary closure of
hotels and limited number of rooms sold 16
16I-III. Overview
Changes in Results I-III. Overview
Operating profit and operating margin
Single park era Burdened with high depreciation and
Operating margin: Operating margin improves
amortization expenses/increase in costs
approx. 20% Operating margin: approx. 20%
Operating margin: approx. 10%
[¥ billion]
24.2% 23.7% 23.1% 23.7% 23.0% 24.6%
24 6%
Opening of Tokyo DisneySea 20.6% 20.9%
18.4% 18.6%
14.6% 15.1%
11.1% 12.0% 11.5% 11.5% 10.4% 11.3%
9.2% 9.9% 9.1% 10.3%
129.2
114.4
110.6 113.1
107.3 110.2 96.8
81.4
66.9 Influence of
53.6
38 7
38.7 40 0
40.0 41.9 COVID-19
34 5
34.5 33 6
33.6 38 0
38.0 34 5
34.5 30.6 34 1
34.1 31.1
25.4 22.1 pandemic
3/99 3/00 3/01 3/02 3/03 3/04 3/05 3/06 3/07 3/08 3/09 3/10 3/1118 3/12 3/13 3/14 3/15 3/16 3/17 3/18 3/19 3/20 3/21 [FY]
Operating profit [¥ billion] (27.0)%
Operating margin
(45.9)
Operating cash
26.7 22.2 23.1 50.6 66.8 64.5 61.7 59.0 59.2 58.3 67.8 72.1 65.1 74.0 87.6 107.5 106.7 109.9 120.6 118.5 128.5 101.6 (8.2)
flow*1
Depreciation
and 11.6 12.4 18.4 37.9 47.9 45.9 44.5 43.3 42.9 43.6 49.7 46.6 42.2 41.9 36.1 36.9 34.6 35.9 38.2 37.3 38.2 39.4 45.8
amortization*2
Capital 37.0 39.7 50.9 86.0 139.6 108.3
59.8 130.4 182.2 109.7 14.8 29.2 46.8 43.1 54.8 52.6 40.1 19.4 27.9 23.2 28.7 20.3 59.8
expenditures
Note: The 3/99 results are unconsolidated.
*1 Operating cash flow = Profit attributable to owners of parent + Depreciation and amortization
*2 Depreciation and amortization costs include that of which have been transferred to non-operating expenses and extraordinary losses.
Operating margin is expected to rise to a higher level after pulling through
the phase of high burden of depreciation and amortization expenses 18
18Results for the FY Ended March 2021 I-III. Overview
Year-on-year comparison
Net sales
FY3/20 FY3/21 Changes Changes Decreased due mainly to the measures to prevent the
[¥ billion] [¥ billion] [¥ billion] [%] spread of COVID-19 such as the temporary closure of
Tokyo Disneyland, Tokyo DisneySea, and Disney
Net Sales 464 4
464.4 170 5
170.5 (293 8)
(293.8) (63 3)
(63.3) H t l as wellll as th
Hotels the operation
ti with
ith limited
li it d attendance
tt d
after reopening our Parks although net sales per
Theme Park Guest increased year on year.
384.0 134.2 (249.7) (65.0)
Segment
Operating profit
Hotel Business Declined owing to a drop in net sales even though
64 3
64.3 28 6
28.6 (35 7)
(35.7) (55 5)
(55.5)
Segment operating expenses were reduced due to the
temporary closure of both Parks and changes made to
Other Business
16.0 7.6 (8.3) (52.3) Theme Park operations and a part of operating
Segment expenses was transferred to extraordinary loss.
O
Operating
ti Profit
P fit 96 8
96.8 (45 9)
(45.9) (142 8)
(142.8) -
Theme Park 19
79.6 (41.9) (121.6) - Comparison with the forecast
Segment
Net sales
Hotel Business
14.7 (1.9) (16.7) - Fell below our forecast owing to limited Theme Park
Segment attendance in line with the state of emergency and
Other Business other factors even though net sales per Guest
2.1 (2.3) (4.4) - surpassed projected figure.
Segment
Operating profit
Ordinary Profit 98.0 (49.2) (147.2) -
Exceeded the forecast announced in Oct. mainly
Profit Attributable to because operating expenses were lower than
Owners of Parent
62.2 (54.1) (116.4) - expected although net sales were below our projection.
Net sales and all levels of profit decreased year on year due to
the temporary Park closure and limited Theme Park attendance 19
19Financial Results I-III. Overview
Changes
g in net sales and operating
g profit and reasons for changes
g
Net sales Operating profit
[¥ billion]
74.2
77.9
52.9 Jan. 8 State of emergency
Sep. 28 Tokyo Disneyland
Feb. 29 Parks temporarily
p y Jul 1 Parks resumed
Jul. Large-Scale Development 33 4
33.4
closed operations area opened
(4.1) 6.1 (15.6) (8.5) 4.3 (26.1)
4Q of FY 3/20 1Q of FY 3/21 2Q of FY 3/21 3Q of FY 3/21 4Q of FY 3/21
[
[Attendance]
] [
[Attendance] ] [Attendance] [Attendance] [
[Attendance] ]
・ Limited
Li it d attendance
tt d iin liline with
ith A
Amusementt P
Park
k ・Oct.
O t 30 Guidelines
G id li were easedd (100 % or
Reasons for chan
Temporary Park Temporary Park closure and Theme Park New Coronavirus Infection less) ・Jan. 12-Mar. 21: Daily attendance
closure [Tickets/ Containment Guidelines (50% or less) [Tickets/merchandise/food and beverages] was limited to 5,000 for each Park
merchandise/food and [Tickets/merchandise/food and beverages] ・Aug. 7-Dec. 31: Held Park admission when the declaration of state of
beverages] ・Revised ticket prices＊1 lotteries for Annual Passport holders emergency was issued
・ May 26‒Jun. 24: ・Limited ticket types valid for admission ・Dec. 1: Started holding lotteries for open ・Mar. 22: The attendance limit was
sales
・Strong demand for event-related merchandise date Park tickets
Offered opportunities to that could not be sold during temporary Park ・Nov. 1: Started offering online shopping raised to 10,000, in principle, for
purchase goods sold at closure service on apppp to all members of the p
public each Park
nge in net
Parks via app ・Aug. 4-Oct. 31: Online shopping service offered including those who are not visiting Parks [Tickets/merchandise/food and
on app to Annual Pass holders regardless of ・Oct. 1: Started selling alcoholic beverages beverages]
whether or not they are visiting Parks on a trial basis at Tokyo Disneyland
20 ・Introduction of variable pricing for
tickets
[All areas] [All areas] [All areas] [All area]
・Fixed ・Increase
Re
Fixed expenses registered as extraordinary ・Increase due to resumed Park operations Increase due to phased increase of ・Decrease
D d
due tto d
decline
li iin
easons for chang
loss [Personnel expenses] attendance
・decrease due to temporary Park closure [Personnel expenses] attendance
operating profit
[Personnel expenses] ・Received employment adjustment subsidy＊2 ・Sep. 30: Terminated payment of ad-hoc [Personnel expenses]
・May 18: Started furlough of employees ・Reduced winter bonus payments to full-time special leave allowance of Cast Members
employees ・Received employment adjustment
・Reduced directors’ compensation (voluntarily and show performers subsidy＊2
returned up until May 2020) [Miscellaneous costs] ・Sep. 30: Terminated furlough of full-time
・Partially reduced summer bonus payments to ・Decreased sales promotion costs and costs employees ・Jan. 8: Shortened Park operating
managerial personnel related to special events [Depreciation and amortization] hours; shortened store hours at or
・Increase due to opening of Tokyo
ges in
closed
l d some stores
t
Disneyland Large-Scale Development area ・Resumed payment of ad-hoc special
leave allowance from Jan.
*1 Although the ticket price revision was implemented on April 1, 2020, it only began to take effect on July 1, 2020, when Parks were reopened.
*2 Of the employment adjustment subsidy received due to the COVID-19 pandemic, the amount received [including the estimate amount to be
received] for reasons other than the temporary closure of our Parks was deducted from operating expenses.
Flexibly changed operations and promoted measures to reduce costs
and increase net sales per Guest 20
20Safety Measures I-III. Overview
• Ensuring health management and physical distancing, implementing cleaning and
sterilization
All areas • Limiting attendance, shortening Park operating hours, and introducing Fixed Date and
Time Passport
Attractions • Closing part of indoor facilities and interactive facilities
• Installing acrylic partitions between attraction seats
• Introducing
I t d i Standby
St db P Pass and d entry
t requestt system
t [From
[F Sep.
S 23 in
i phases]
h ]
Entertainment
• Operating shows
shows, parades,
parades and character greetings while changing direction of
performance
21
M h di
Merchandise • Promoting the use of online Tokyo Disney Resort Shopping service
• Recommending payment by credit card or other means of cashless payment
• Installing acrylic barriers at cashier counters
• Providing crowd-level forecasts for major shops on Tokyo Disney Resort official website
Food and beverages • Introducing two-dimensional barcodes for checking menus
• Recommending payment by credit card or other means of cashless payment
• Installing acrylic barriers at cashier counters
As of Apr. 28, 2021.
Operation that gives top priority to safety and peace of mind 21
21State of Financing I-III. Overview
resources 1 and liquidity
Changes in capital resources*
Line of credit
Corporate bonds [unissued]
Cash and securities [include corporate bonds of ¥30 billion issued in Rough
g plan of
Mar. 2015 and ¥100 billion issued in Sep. 2020] capital allocation
Cash and securities [corporate bonds issued in Jan. 2019] [¥ billion]
736 Complementary
Earthquake risk financing 716
680 working capital for
use until recovery
200 200
200 Continued growth
535
investments
100 100 ・ Tokyo Disney Resort Toy
431 200 Story Hotel [approx. ¥31.5
100
billion]
216 ・ Tokyo DisneySea Large-
231 236 22 Scale Expansion Project
Issuance of corporate 180 [approx. ¥250 billion]
135 bonds [¥100 billion]
50 50 50 50 50
Working capital
150 150 150 150 150 Capital set aside
for earthquake
risks
End of 3/20 End of 6/20 End of 9/20 End of 12/20 End of 3/21
Amount registered *1 Include corporate bonds [unissued]
and line of credit
on consolidated 281 185 266 286 230 *2 Total of cash and deposits and
balance sheet*2 securities
Secured necessary capital resources to acquire immediately available
working capital and funds for medium- and long-term growth 22
22Outlook for the Fiscal Year Ending March 2022 I-III. Overview
In view of the application of the “priority measures to prevent the spread of disease” to Urayasu
Cit Chiba
City, Chib Prefecture,
P f t andd the
th opaque external
t l environment
i t ahead,
h d it is
i difficult
diffi lt to
t formulate
f l t a
highly accurate financial forecast of results for FY3/22. We will therefore disclose our forecast
when circumstances change for the better.
Policy
y and Funding
g Status for FY3/22
Implement rigorous infection countermeasures and set limits on attendance to
Sales ensure safety and peace of mind throughout the year
Continue discussing measures to increase net sales per Guest
Enhance cost efficiency in line with attendance level
Cost
Re-examine work volume and scrutinize non-essential/non-urgent costs
Project capital expenditure to be in the ¥130 billion range and depreciation and
Capex
p amortization expenses
p to be in the ¥45 billion range
g
DP The depreciation method, mainly for tangible assets of Tokyo Disneyland will be
changed from declining-balance to straight-line 23
Prepare capital resources* in order to secure working capital for use and capital for
Funding growth investments
*Include line of credit [¥200 billion] and unissued corporate bonds [¥100 billion]
An annual dividend per share is not yet determined although policy of aiming steady
Dividend
payout of cash dividends
Current Operation Status
Apr. 20-May 11: Daily attendance is limited to 5,000 for each Park, and Park operating hours are
shortened to from 9AM to 8PM
Each
E h DiDisney Hotel
H l operates with i h limited
li i d number
b off rooms sold
ld
Ikspiari shortens operating hours
Disney Resort Line continues its operation
Halt alcohol sales in the resort from Apr. 28-May 11 23
23II. 2020 Medium-term Plan
1. Review of 2020 Medium-term Plan II. 2020 Medium-term Plan
Strengthen
St th business
b i foundation
f d ti toward
t d long-term
l t
Policy:
sustainable growth
2020 Medium
Medium-term
term Plan Results
Up until FY3/20, the Intent to Return
rate, an indicator of Guests’
satisfaction,
ti f ti was maintained
i t i d att hi
high
h
levels
To consistently provide a highly
As the Park environment changed
satisfying Theme Park experience
considerably in FY3/21, we took
Target rigorous measures against COVID-19,
25
giving top priority to safety and peace
of mind
To achieve record high Theme Park
Withdrawal of quantitative target due to
attendance and operating cash flow* in
changes in management environment
FY3/21
*Operating cash flow = Profit attributable to owners of parent + Depreciation and amortization
Up until the COVID-19 pandemic, we had been achieving growth in both attendance
and operating cash flow, with Guests’ satisfaction maintained at high level 25
251. Review of 2020 Medium-term Plan II. 2020 Medium-term Plan
2020 Medium
Medium-term
term Plan Results
Tokyo Disney Resort 35th Anniversary
event
Strengthen Novelty Introduction of “Soaring: Fantastic Flight”
structural aspects Made steady progress Opening
O i off Tokyo
T k Disneyland
Di l dL Large-
Scale Development area
to provide “novelty” up until the end of
Core Bu
and “comfort” FY3/20 Renovation of service facilities
Comfort Start offering
g official app
pp and added new
usiness Stra
↓ functions
Started hiring “Theme Park operations
Create a In FY3/21, reviewed employees”
Strengthen non- comfortable action plan to give top Expanded the scope of employees y
ategy
structurall aspects workplace priority to taking working at home
[human resources environment measures against26 Providing nursery facility within the
capacity] on a company
COVID-19
long-term Promote a
sustainable
t i bl b basis
i Improve
I hospitality
h it lit
tangible sense of Strengthen career support
personal growth
Fina
Allocate operating cash flow to growth Up until FY3/20, operating cash flow was allocated to growth investments.
Poolicy
ancial
i
investment
t t and
d aim
i tto enhance
h corporate
t I FY3/21,
In FY3/21 secured d liliquidity
idit on h
hand
dddespite
it th
the challenging
h ll i b business
i
value environment, and continued with our growth investments
Strengthened
St th d business
b i foundation
f d ti byb steady
t d execution
ti off activities
ti iti
based on core business strategy and continued with growth investments.
Reviewed action plan in FY3/21 due to the COVID-19 pandemic 26
262. Actions Taken in FY3/21 II. 2020 Medium-term Plan
FY3/21
Temporary
closure July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
M
Measures planned
l d and
d executed
t d amid
id tto COVID
COVID-19
19 pandemic
d i
Advance ticket Introduced Standby Expansion of applicable
reservation system Pass system attractions
Introduced two- Introduced entry
dimensional barcodes for request system
checking menus Started offering online shopping service on app
to all members of the public including those who
are not27visiting Parks
Started holding lotteries for Park
tickets
Swiftly implemented digital initiatives as part of our infection countermeasures
by bringing forward some measures that had been under discussion and
applying the results of past actions
Measures implemented as part of our infection countermeasures
will
ill b
be examined
i d ffor possible
ibl upgrades
d and d expansions.
i
Transformation of business structure is required to prepare
for sudden changes in the environment 27
27III. Growth Investments beyond FY3/22
Tokyo Disney Resort Toy Story Hotel III. Growth Investments beyond FY3/22
Owner: Oriental Land Co.,
Co Ltd.
Ltd
Management Management/Operations: Milial Resort
Form Hotels Co., Ltd. [100% subsidiary of
Oriental Land Co., Ltd.]
Start of
2nd
2 d half
h lf off FY3/22 [[scheduled]
h d l d]
Business
29
Floor Space About 40,000㎡ [hotel building only]
Number of 595
Rooms [11 floors above ground, 1 basement]
Tokyo Disney Resort Toy Story Hotel
・Restaurant
FY 3/22, Approx. ¥31.5 billion Facilities ・Disney shop
・Flat
Flat and multistory parking lots,
lots etc.
etc
Capital
Approx. ¥31.5 billion
Investment
Note: This is not an exact representation of the development site. Category Moderate type
©Disney/Pixar 29
29III. Growth Investments beyond FY3/22
Tokyo DisneySea Large-Scale Expansion Project
Tokyo Disneyland
Tokyo DisneySea
Tokyo DisneySea Large-
Large-Scale
E
Expansion
i Project
P j t Development
D l t Site
Sit
FY 3/24, Approx. ¥250 billion
Note: This is not an exact representation of the development site
Area About 100,000m2 [about 140,000m2 including
30 backstage area]
Opening FY 3/24 [scheduled]
Themes of the Frozen 1 attraction, 1 restaurant
areas and the
Tangled 1 attraction, 1 restaurant
number of
facilities
ac es ete Pan
Peter a 2a
attractions,
ac o s, 1 restaurant
es au a
Investment effect
Effectiveness of Investment amount ・Boost-up effect on net sales by ¥50 billion annually
investment Approx. ¥250 billion ・Consolidated net sales are expected to reach the range
of mid
mid-¥500
¥500 billion to the high
high-¥500
¥500 billion
©Disney
Composed of three areas, four attractions, and a hotel 30
30Disney Hotel Categories III. Growth Investments beyond FY3/22
Tokyo Disneyland Hotel
31
Tokyo DisneySea
Tokyo Disney Hotel MiraCosta New Disney Hotel located
Celebration Hotel Tokyo Disney Resort
Toy Story Hotel inside the Park
Note: Artist concept only [475 rooms, 2 restaurants, etc.]
Note: Artist concept only
Disney Ambassador Hotel
yp
Value Type y
Moderate Type Deluxe Type Luxury Type
©Disney/Pixar
Provide more options for Guest demands 31
31Policy for Long-term Growth III. Growth Investments beyond FY3/22
The new plans will apply to all seven themed lands, including Fantasyland. An
area-based development for each themed land is intended to leave a lasting
impact on the park
To achieve a significant breakthrough, the expansion of the existing site and
Tokyo Disney Resort utilization of new development will create an environment with a higher degree
of Guest satisfaction from qualitative as well as quantitative standpoint
To add more value to Tokyo Disney Resort as a whole, improve the environment
as a resort, including making more guest rooms, and increase value of the stay
32
Further boost the level of net sales with continued large-scale investment
・ E
Establishment
t bli h t off O
Oriental
i t l Land
L d IInnovations
ti
・ Regardless of the establishment of new company, we will continue on the
research on the business field expected to grow, and widely consider to
New Business contribute to persistent growth of the OLC group
・ Plans for the new business aimed at growing it into single business segment
will be considered in ways that are not by specific timeframe
Broader investigation for further development
Formulate policy from a long-term perspective and realize plans
by taking the internal/external environment into consideration 32
32IV. For Long-term Sustainable Growth
IV. For Long-term Sustainable Growth
For Long-term Sustainable Growth [e.g., ESG]
Strategy Roadmap
Address global environmental and social issues as
an integral part of our management and business
strategies to aim for more sustainable management
ESG project team launched
[Nov. 2020] Contribute to achieving the SDGs
34
2020 Medium-term Preparation
p Next Medium-term
Plan period Plan
Apr. 2017 Apr. 2021 Apr. 2022 [tentative]
Establish strategies to contribute to a sustainable society and achieve profit
growth as a corporation, and plan to announce them in the spring of 2022 34
34IV. For Long-term Sustainable Growth
For Long-term Sustainable Growth [e.g., ESG]
Recognition
g of Environmental Change
g
Issues recognized prior to the COVID-19 pandemic
Strategies so far Risks
[1] Continuously make large-scale investments to generate value to motivate
Surging
g g development/construction
p costs
Park visits
[2] Secure a large volume of Guests to sustain the apparatus industry Decrease in total population
[3] Secure a sufficient number of employees to attend to the large volume of
Decrease in working-age population
Guests
[4] Make concentrated investments in the Maihama area Climate change/natural disasters
＋
Recognition gained through COVID-19 pandemic
・Value of happiness brought about by person
person-to-person
to person interactions
・Diversified perspectives on leisure activities resulting from altered awareness of the 3 Cs [Closed spaces; Crowded places; Close-contact
settings] 35
Future Direction of Businesses
Evolve business operations to offer options that more closely cater to Guest needs; Improve our capacity to
Existing address fluctuations in demand to enhance the added value of the Tokyo Disney Resort as a whole
businesses E.g., Enhance Guest
E.g., Leverage innovation engagement
Take on the challenge of establishing new businesses that help us resolve issues and enhance values in our
New core business, and provide us with growth opportunities
businesses E.g., Help children gain E.g., Labor saving; flexible E.g., Measures against heat and
experience staffing; manpower saving cold; energy consumption
Consider addressing ESG issues as an integral part of management
and business strategies 35
35IV. For Long-term Sustainable Growth
Ｅ Environmental Materiality [Updates on Discussions]
Quantitative target/ Target SDG to
Materiality Direction of measures What we aim to be Indicator (KPI) contribute
Target status FY to
Contribute to achieving 40% reduction from
change and natural disasters
Measu
2030
Contribute to achieving a decarbonized society by Amount of FY 3/19 level
a decarbonized society reducing greenhouse gas greenhouse gas
ures to address
[Mitigate climate change] emissions and mitigating emissions
climate change Net zero emissions 2050
What we aim to be
s climate
d
Strengthen resilience
[Adaptation to climate Identify risks posed by natural disasters and rising temperatures stemming from
change] climate change and consider measures to strengthen the resilience of facilities and
manuals
・Adopt resource
resource-saving
saving products/services and easily reusable/recyclable resources, engineering
Adoptt resource-saving
Ad i
and design with the aim of contributing to achieving a circulation-type society
products/services and
・While pursuing conventional recycling
36projects, focus on new solutions to help increase the
reduce waste
recycling rate and achieve resource sustainability
circulattion-type socie
Measurres to promote
Use sustainable Give preference to resources that promote sustainability with the aim of contributing to resource
resources sustainabilityy
Make effective use of Strive to reduce water intake and promote wastewater recycling with the aim of contributing to water
water resources resource sustainability
・Strive to reduce the amount of chemical substances used and implement proper management
thereof to alleviate environmental impact, thereby contributing to forming symbiotic relations
with nature
ety
Contribute to forming
symbiotic relations with ・Strive to reduce the amount of air pollutant emissions to alleviate environmental impact, thereby
nature contributing to forming symbiotic relations with nature
・Strive to preserve biodiversity in the local communities in which we engage in business, thereby
contributing to forming symbiotic relations with nature
Promptly strengthen measures to address environmental issues
that exert prominent impacts on society at large 36
36IV. For Long-term Sustainable Growth
Ｓ Ｇ Social and Governance Materiality [Updates on Discussions]
Ｓ Society
Materiality Direction of measures
F t HR with
Foster ith spontaneous
t creativity
ti it
Employees Promote HR diversity
Provide a fulfilling workplace environment
Children Help children achieve their hopes and dreams
Respond to changes in social and Guest needs based on
Diversity ＆ Inclusion employees’ diverse values
Implement systematic measures to respect human rights
Supply chain management 37 and collaboration across supply chains
Promote sustainability
Ｇ Governance
Materiality Direction of measures
Fairness in business
Fair decision-making
management
Achieve relationships of trust and collaboration with stakeholders
Stakeholder engagement
based on open dialogues
To be determined based on stakeholder engagement and further discussions 37
37V. Appendix
Using Digital Technology to Enjoy the Park V. Appendix
Before visiting
• Purchase Park ticket
• Make restaurant booking if venue accepts reservations [reservations
Tokyo Disney Resort App
can also be made on dayy of visit and at restaurant]] 12 million downloads
• Check digital Park map/waiting times/facility information achieved
(as of Feb. 2021)
• Check products sold at Parks
• Online hotel check-in
After entry
• Obtain Disney FASTPASS*
• Online shopping [transactions can be made until 23:30 on day of visit]
• Show/parade-viewing lottery* 39 Digital Park map
• View/purchase photos taken at Parks [“Disney Photo”]*
• Electronic moneyy accepted
p
*Services currently suspended due to COVID-19 pandemic
Measures currently taken against COVID-19 pandemic
• Expanded shopping service via official app Tokyo Disney Resort
• Introduced Standby Pass and Entry Request system Shopping service
©Disney
Promote utilization of digital technology to enrich
Park experience of each Guest 39
39Oriental Land Co
Co., Ltd
Ltd.
Investor Relations Group, Finance/Accounting Department
URL: www.olc.co.jp/en
[Disclaimer]
This document includes statements about Oriental Land’s plans, estimates, strategies and beliefs. The statements made
that based on historical fact represent the assumptions and expectations of Oriental Land in light of the information
available to it as of the date when this document was prepared,
prepared and should be considered as forward-looking
forward looking.
Oriental Land uses a variety of business measures to constantly strive to increase its net sales and management
efficiency. However, Oriental Land recognizes that there are certain risks and uncertainties that should be considered
which could cause actual performance results to differ from those discussed in the forward-looking statements.
Potential risks could include, but are not limited to, weather, general economic conditions, and consumer preferences.
Th f
Therefore, there
th is
i no firm
fi assurance that
th t the
th forward-looking
f d l ki statements
t t t in
i this
thi d
documentt will
ill prove tto b
be accurate.
t
Theme park attendance figures have been rounded. Financial figures have been truncated.
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